70% of Crypto Companies Report Deepfake Fraud Rise

New Sumsub research on identity verification in the crypto industry finds the amount of deepfakes in the sector increasing by 128%

LONDON and MIAMI, Oct. 26, 2023 /PRNewswire/ -- Sumsub, a full-cycle verification platform, today releases its "State of Verification and Monitoring in the Crypto Industry 2023" report. The findings focus on the regulations and verification practices for crypto companies, with highlights from verification performance and identity fraud statistics.

The intention of the report is to provide crypto businesses with a clear understanding of industry verification standards and trends, offering insights into enhancing user experience and improving operations. To gather direct insights, Sumsub conducted a survey among 100+ crypto companies, and combined its results with expert interviews of professionals in the crypto industry. Overall, 800,000+ fraud attempts were studied for this report. All data was aggregated and anonymized.

Key findings from the report include*:

• 77% of crypto companies observed new fraud patterns and schemes this year, with attack methods becoming more professional;
• Deepfakes remain a growing concern for the crypto industry, with 70% of companies noting their increasing popularity among fraudsters;
• In 2023, the number of deepfakes in the crypto industry increased by 128% compared to 2022;
• 55% of crypto companies reported an increase in fraud-related losses – both financial and reputational – connected to applicants;
• The shift from document-based to Non-Doc Verification solutions is underway in crypto, demonstrating faster verification, from 38 to as fast as five seconds and from 46 to as quick as three seconds in Brazil and Ghana, respectively. 

"As the crypto industry continues to evolve, we see a global trend of decreasing onboarding time for crypto users," comments Jacob Sever, co-founder and Chief Innovation Officer of Sumsub. "From 2022 to 2023, verification time nearly halved across all regions, driven by the growing expectation of swifter processes among users. As such, providers face the challenge of complying with increasingly stringent regulations, making solutions such as Non-Doc Verification essential. By expediting onboarding processes, crypto firms eliminate the need for users to upload any documents, better allowing providers to keep pace with industry demands and enhance pass rates, all while thwarting the threat of synthetic fraud."

To download the free "State of Verification and Monitoring in the Crypto Industry 2023" report, visit https://sumsub.com/crypto-report-2023/.

* The statistics presented in the report are based on Sumsub's internal data on millions of verification checks analyzed in the first 8 months of 2023 and the same period in 2022.

About Sumsub

Sumsub is a full-cycle verification platform that secures the whole user journey. With Sumsub's customizable KYC, KYB, transaction monitoring and fraud prevention solutions, you can orchestrate your verification process, welcome more customers worldwide, meet compliance requirements, reduce costs and protect your business.

Sumsub has over 2,000 clients across the fintech, crypto, transportation, trading, e-commerce and gaming industries including Binance, Mercuryo, Bybit, Huobi, Unlimit, DiDi, Poppy and TransferGo.

SOURCE Sumsub